Press Releases

Andrew Smith announces £38 Million Mobile 'Quick Win' Strategic Partnership with Vodafone (HMT)

Andrew Smith, Chief Secretary to the Treasury , today announced that the Office of Government Commerce (OGC) has agreed a strategic partnership with Vodafone for the provision of mobile telephone services to Government bringing over £38m of savings to the taxpayer.

The partnership gives Vodafone access to over 100,000 mobile phone users across government for two years bringing a more streamlined approach to the government market.

Speaking about the new strategic partnership Andrew Smith said:

"We live in a fast moving technological age where the growth in the mobile phone usage is immense.

"This agreement is the first in a series of initiatives streamlined by the Office of Government Commerce and demonstrates the savings that can be achieved with a co-ordinated approach to procurement across Government. The strategic partnership with Vodafone will deliver savings on both service costs and administration totalling at least £38 million over the next two years. This is excellent news for the taxpayer.

" There are clear benefits for Government to enter into strategic partnerships with major private sector providers, particularly where they involve initiatives that optimise the purchasing power of all government departments and demonstrate their ability to improve services and reduce costs. The agreement makes available Vodafone's best value for government to the whole of the public sector, including local authorities and the NHS, on government contractual terms and without the need for further local competitions."

Peter Gershon, Chief Executive of the Office of Government Commerce said:

"This is a quick win deal and demonstrates the OGC's strategic approach to the purchase of a key procurement commodity across Government. Over the next two years we will gain a better understanding of the Government's needs in this dynamic field and return to the market as a more intelligent customer. I encourage all public sector organisations to make use of these arrangements as soon as they are able.

"There are real benefits to the taxpayer on this agreement as the joint arrangement with Vodafone includes process savings, tariff reductions and access to new technology. This should be seen as a catalyst for other private sector partners to come forward and work to streamline contract processes with Government. Such systems optimise the purchasing power of all government departments and demonstrates the real scope for improving services and reducing costs."

The agreement with Vodafone is based on the Government Telecommunications Mobile contract, one of the Central Computer and Telecommunications Agency's (CCTA) managed services. This agreement potentially encompasses over 100,000 users across government and caters for the varying usage requirements of the public sector on a range of tariffs specifically designed for the government marketplace.

NOTES TO EDITORS

• 1. The Central Computer and Telecommunications Agency (CCTA) became part of the Office of Government Commerce, as an Office of HM Treasury, on 1 April 2000.
• 2. The Office of Government Commerce (OGC) oversees the purchasing activity of some 200 Government departments, agencies and NDPBs, performing an important function in the Government's modernisation and competitiveness agenda and ensuring best value for major elements of public expenditure. It provides a central resource of procurement skills for departments and sets the strategic framework within which departments operate.
• 3. A photocall is taking place at 10am today outside HM Treasury with Andrew Smith, Chief Secretary to the Treasury, Peter Gershon, Chief Executive OGC, and Graham Ward, Managing Director Vodafone Corporate. Copies of the photographs will be available from the Treasury Press Office on 020 7270 5192 or Vodafone Press Office on 07771 775043.
• 4. Press enquiries to Malcolm Graves on 020 7270 5192 or 020 7211 1366. Public Enquiries to 020 7270 4558. This press release can be found on the HM Treasury website at www.hm-treasury.gov.uk and on the Office of Government Commerce's website at www.ogc.gov.uk